Need advice- Loan denied AFTER delivery

[PlaidPotato]

Hi all,

I ordered a model S for me and a model X for my wife around the same time. Both financed, 25k down.
Loans approved on the app, I pick up the S and approximately a week later, I pick up the X.

4 days after picking up the car, I get an urgent email from Tesla saying loan declined on the X as there was a stipulation of a single vehicle and that since I had just activated the loan for the S, the X loan was declined. At no point was I made aware of this during the delivery of the X. I did not note that on any document for the loan though possible I could have missed, I suppose.

They offered me a few options.
Namely, find my own loan, accept a loan with higher rate and more money down, return the car but may not recover my full downpayment due to miles driven and wear.

I am working with them to get a new loan that does not require additional funds down as that is not in the cards right now but it is not looking good.

I am a bit puzzled by this (I have owned around 40 cars, financed many, never had something like this happen).
Has anyone been through this?
I am tempted to return the car but concerned about not getting a refund and frankly feel like this is a bit of bad faith.

Thanks!

 

[RobertsM3SR]

Go to a credit union for a new loan

sounds odd but could be just the sign of the current times we are in. don't know your income or financial status.

 

[PlaidPotato]

I’m not do much concerned about getting the financing at outside bank, moreso flabbergasted that the car was delivered with nobody noticing, then the subsequent delay and now this impasse. I’ve never even heard of this.

Seems like Tesla should have not allowed delivery and now they are docking me the mileage.

Frustrating given this is my 6th tesla. May be the last…

 

[RobertsM3SR]

I’m not do much concerned about getting the financing at outside bank, moreso flabbergasted that the car was delivered with nobody noticing, then the subsequent delay and now this impasse. I’ve never even heard of this.

Seems like Tesla should have not allowed delivery and now they are docking me the mileage.

Frustrating given this is my 6th tesla. May be the last…

this happened to me when I was younger when I bought a 2009 Honda civic. Did the deal on a Sunday (banks were closed) and they let me leave with the car assuming deal was closed. Got a call a week later with a denied app and must return car or find another loan. this type of stuff does happen.
hope you figure it out, sucks that they are holding your down payment hostage

 

[father_of_6]

Option 4: That car was *FREE!* Congratulations!

(be sure to disable the GPS)

 

[ThomasD]

They gave you the car before the loan was funded? Sounds like what car dealers do. Telling people just take the car home we will get your loan approved. A few days later say sorry you have to put more money down with a higher interest rate.

 

[Nosken]

Get one of the cars financed quickly, before the other one hits your credit file.

 

[PlaidPotato]

The loan had been approved on tesla app earlier that week. Just puzzling how this happened with Tesla. Turned off by the whole thing

 

[holeydonut]

Get one of the cars financed quickly, before the other one hits your credit file.

IANAL, but this is a bad idea. Lenders don't like to be tricked... there's fine print somewhere in 99% of loan agreements that assert the borrower needs to disclose any significant liabilities that have not yet been known in their borrower profile.

What I recommend makes much more sense is what @RobertsM3SR recommended which was go to your local credit union and get an auto loan; with the caveat that you fully disclose the loan you just originated on the Model S.

Sure, this may add a few basis points to the loan on your Model X, but it sure beats the alternative of your credit union claiming you're in breach by having withheld knowledge of your Model S loan from them.

To defend Tesla a bit (if you've read my posts lately I'm definitely not one to defend Tesla very often)... they are simply a lead aggregator for potential borrowers and they send your information to a platform and allow possible lenders to offer you loans. Tesla isn't the one underwriting or approving the loans.

It seems like having two loan applications at the same time is fine, but having both loans originated forces your DTI into a different credit/risk bracket. So the lender on the Model X loan wants more equity coverage or a higher interest rate to cover the risk.

Tesla could reasonably inform possible lenders a buyer is actually acquiring two automobiles (and requiring two loans), but this seems like an unfortunate edge case that is likely due to the fact they try to automate everything.

Edit: this isn't to say what Tesla did is good customer experience. Quite the contrary, if Tesla actually had any desire to maximize human-feel-goods and positive-experience then they wouldn't automate so much. If you went to a single local BMW dealer to try and buy two BMWs, it's very likely the finance person would factor both future loans in their underwriting if you financed with BMW. And their failure to do so would be pretty bad. But ss everyone always says, this is just "Tesla Being Tesla".

 

[houstonian]

The loan had been approved on tesla app earlier that week. Just puzzling how this happened with Tesla. Turned off by the whole thing

Another vote for credit unions.

May want to check out Alliant FCU and US Senate FCU.

Remember CUs generally come with membership requirements but these are generally easy to navigate and you only have to bother with them once.